iCAD Reports 32.1% Revenue Decline and Increased Net Loss in Q3 2022

iCAD, Inc. reported a significant decline in financial performance for the third quarter of 2022, with total revenue of $6.4 million, down 32.1% from $9.4 million in the same period last year. The decrease was primarily driven by a 43.1% drop in product revenue within the Detection segment, which fell to $2.5 million from $4.5 million. The Therapy segment also experienced a 40.4% decline in revenue, totaling $2 million compared to $3.4 million in the prior year. For the nine months ended September 30, 2022, total revenue decreased by 16.9% to $21.5 million, down from $25.8 million in 2021.

The company's net loss for the third quarter was $3.9 million, or $0.15 per share, compared to a loss of $2.2 million, or $0.09 per share, in the same quarter of 2021. For the nine-month period, the net loss increased to $10.6 million from $7.1 million in the previous year. The increase in losses was attributed to a combination of reduced revenues and higher operating expenses, which totaled $8.3 million for the quarter, a slight decrease from $8.9 million in the prior year.

In terms of strategic developments, iCAD has begun transitioning to a subscription model for its products, which is expected to impact short-term revenue recognition negatively. The company noted that while subscription revenue is currently a small portion of total license revenue, it anticipates increased customer demand for this model. Additionally, iCAD's cash and cash equivalents stood at $24.6 million as of September 30, 2022, providing sufficient liquidity to sustain operations for at least the next 12 months.

Operationally, iCAD's customer engagement metrics showed a mixed performance. The company reported an increase in service and supplies revenue within the Detection segment, which rose by 17.3% to $1.8 million. However, the Therapy segment's service and supplies revenue decreased by 10.8% to $1.3 million. The company continues to face challenges from the ongoing COVID-19 pandemic and geopolitical tensions, particularly the conflict in Ukraine, which could further impact its operations and revenue streams.

Looking ahead, iCAD remains cautious about its outlook, acknowledging the potential for continued adverse effects from the pandemic and geopolitical instability. The company is focused on adapting its business model to meet changing market demands while managing its operational costs. iCAD's management emphasized the importance of monitoring liquidity and capital resources closely as they navigate these challenges in the coming quarters.